The Global IoT Chip Market was valued at USD 11,980. 8 million in 2020, and it is expected to reach a value of USD 27. 627. 9 million by 2026, registering a CAGR of 14. 98% over the forecast period, 2021 -2026.
New York, Nov. 03, 2021 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report "Global Internet of Things (IOT) Chip Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)" – https://www.reportlinker.com/p06129742/?utm_source=GNW
Due to both demand-side and supply-side factors, the growth in the number of IoT connections slowed down in specific sectors during the pandemic. Some IoT contracts were canceled or postponed due to firms going out of business or scaling back their spending. The demand for some IoT applications reduced during the pandemic. For instance, the demand for connected vehicles dropped due to reduced usage and deferred spending on new cars. The ACEA also reported that the demand for new cars in the European Union decreased by around 28.8% in the first three quarters of 2020.
– The rising demand for automation and the growing application of IoT devices across various end-user verticals, such as healthcare, consumer electronics, industrial, automotive, BFSI, and retail, are further driving the adoption of IoT devices.
– According to the Internet and Television Association’s Projections, by 2020, the number of IoT-connected devices was expected to reach 50.1 billion compared to 34.8 billion in 2018. The growth is primarily attributed to the integration of connectivity competence in a wide range of devices and applications, coupled with the development of different networking protocols that have appreciably driven the growth of the IoT chip market across multiple end-user industries.
– With the rapid increase in the number of IoT devices, the chip requirement for building these IoT devices is also expected to rise over the forecast period. Along with this, reducing energy consumption combined with the miniaturization of chips will be the priority of manufacturers.
– For instance, in June 2021, Impinj Inc. announced the introduction of three new RAIN RFID reader chips that enable IoT device manufacturers to meet the increasing demand for item connectivity in the retail, supply chain, and logistics applications consumer electronics, among other markets.
– Currently, NB-IoT, Cat-M1, and LTE command a significant share of 4G IoT traffic. The increased deployment of 5G provides quick and efficient connectivity for Internet-of-Things (IoT) devices. Thus, the booming IoT space and the supporting chip makers are expected to further increase the demand for IoT chips during the forecast period.
Key Market Trends
Industrial Segment is Expected to Witness Significant Growth
– With the evolution of IIoT, owing to 5G connectivity and advances in sensor technology, the number of IoT devices is expected to grow significantly by 2026. Industrial end-users are shifting from data-driven decision-making toward automated decision-making in real-time. Additionally, plant floor automation is increasingly adopting IIoT for data generation that has provisions for internal customer engagement. Further, organizations are leveraging IIoT to […]